Hanjin Kal (A180640) Q1 2025 earnings summary

Executive summary

• Consolidated operating revenue for Q1 2025 was ₩627B, down 10.2% year-over-year, with operating income at ₩68B, a 47.3% decrease.

• Net income attributable to shareholders was ₩731B, down 34.2% year-over-year, supported by strong equity-method gains from affiliates.

• The group’s financial position remains robust, with total assets at ₩4.36T and equity at ₩3.36T as of March 2025.

Financial highlights

• Standalone operating revenue declined 7.0% year-over-year to ₩938B, with 87.8% from dividends and 10.6% from brand royalties.

• Standalone operating income dropped 12.7% year-over-year to ₩832B.

• Consolidated EBITDA for Q1 2025 was ₩127B, down 33.9% year-over-year.

• Gross margin for Q1 2025 was ₩273B, down 9.0% year-over-year, with a gross profit margin of 43.6%.

• Finance costs increased to ₩18.2B from ₩17.1B year-over-year.

Outlook and guidance

• Management notes that forward-looking statements are subject to significant uncertainties and may differ materially from actual results due to market and strategic changes.

• The group expects continued market volatility due to global economic uncertainty, high oil prices, and currency fluctuations.

• Strategic focus remains on cost control, operational efficiency, and strengthening core business segments.

• Dividend policy targets payout of around 50% of separate net income (excluding one-offs) for FY2024–2026.